Welcome to the first release of the

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(No Transcript)
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WELCOME

• Welcome to the first release of the
• Game Technology Report
• Commissioned by National Research Council IRAP
• and conducted by New Media BC

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Scope of the Study

• To map the size of the industry
• To profile select game technology companies in BC
• To show where these technologies fit in the value
  chain

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Why Game Technology?

• BC is a hotbed for game development
• 31 million consoles in North American homes
• Over 6.9 billion worth of games software sold in
  the U.S alone in 2002
• Were home to international players such as
  Radical Entertainment and Electronic Arts Canada
• We have an abundance of entrepreneurial energy,
  innovative spirit and technical competence

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Value Chain
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Strong Links in the Chain

• Boutique software development
• Strong cluster of game developers
• Innovative - fast moving mobile games companies
• Limited game hardware expertise

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Why a Market Map?
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What The Market Map Tells Us

• Significant number of game developers working on
  multiple platforms
• Many developers have secondary lines of
  complementary business
• Smaller group of primary software providers
• Very limited hardware offerings

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Technology on the Map

• Smaller sub-set of companies developing software
  and hardware solutions
• Hardware companies are relatively well
  established in international markets
• Mobile software developers are generating both
  titles and software
• Platform software developers are extremely
  innovative and need early adopters
• Game software developers are building internal
  tools for commercialization

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Competence and Challenge

• Innovative
• Entrepreneurial
• Visibility
• Big Fat Hairy Markets

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Hardware

• Phoenix Technologies Incorporated
• Visualeyez
• Wide-angle, high speed, high accuracy and high
  resolution active optical real-time motion
  tracking system
• Game companies already using this technology,
  such as Radical and Koei
• Among top 4 players in the motion capture market

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Hardware

• Nokia Canada
• One of the largest mobile device hardware
  manufacturers
• 600,000 nGage phones shipped since Fall 2003,
  Next version has been refined
• Developing a broad range of game technologies

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Mobile

• AirGames Wireless
• Old-timer in the mobile games market, Founded in
  2000
• Publisher and developer, with custom embedded
  platforms that are proven and stable
• 500 products with 70carriers

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Mobile

• Exponentia
• Digital Media Pass platform TV audience
  interaction with live web/mobile content.
• Proprietary game engine and content management
  software for web and wireless
• Recently signed a major deal with TSN

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Mobile

• IUGO
• Multiplayer mobile games and applications
• Developing a toolkit for mmmg massively
  multiplayer mobile games
• Platform/Carrier independent technology players
  can play across networks

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Platform

• Condition30
• Platform technology that automates rich content,
  such as music, animation, traffic control
• Zenstrings game engine provides contextual,
  evolving music
• Rights-free, high quality music compatible with
  PC and Xbox platforms (to date)

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Platform

• Gekido Design Group Inc.
• Reality Factory Game Creation Suite, open source
  tool suite for developers
• Pro-sumer/Prototyping applications
• Game engine designed for non-programmers

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Platform

• Singular Inversions
• FaceGen a full 3D authoring tool for human
  faces- The only statistically based tool
• Creates 3D faces from 1-2 random photos with full
  shape and colouring controls
• Applies face to any polygonal mesh and UV map,
  recognizable face coding in 130 bytes

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Platform

• Sxip
• Single Sign On and Personal Identity Management
  for the web
• Single sign-on solution across multiple gaming
  titles for subscription-based services
• Early innovator addressing a critical and growing
  need

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Software

• Factory1 Games
• Console development toolkit with engines and
  editors for prototyping and developing
• Core engine, libraries, game definition language,
  graphic program, AI library, FE library
• Also a game developer working on a Street Soccer
  title

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Software

• Ludicorp
• Game and applications developer, focus on real
  time mmpog (Game Neverending)
• Game engine supports mmpog requirements and
  enables a rich level of interactivity
• Also developing network software, content
  development software, wireless software and
  Internet distribution software

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Software

• Next Level
• Technology suite for full service game
  development including multiplatform rendering
  systems, world object manager, cross-platform
  controller modules, skeletal animation system,
  inventory systems, core library, animation
  viewers, converters
• Strong gameplay animation system, self shadowing
  and player on player shadowing
• Experienced company with early success and proven
  track record

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Software

• Relic
• One of BCs most established developers, recently
  announced acquisition by THQ
• Proprietary engine for real time strategy
  development
• Multiple components that can be used separately
  or together with a primary or foundation code
  line that can be customized

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Overall Trends

• Predominantly SMEs
• Benefit from the type of support that NRC
  provides
• Access to resources, human and financial,
  critical
• Highly skilled and very talented
• Speed to market is imperative

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Opportunities

• Global transparency of game development
• Green business for a new economy
• Technical expertise and support for innovation
• Access to talent and need for increased
  availability
• Relative ease of reaching international markets
• Inter-regional alliances
• Market demand
• A long history of fusing content with technology

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Beyond BC

• Linkages and Opportunities with Asia Pacific
• Partner report from Asia Pacific Research Group
• Identified trends, needs and opportunities

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The Asia Pacific Game Industry

• Trent Smith, Partner Director
• APRP, Singapore Office
• The Asia Pacific Game Industry
• Headlines and Opportunities for BC Firms

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The APAC Game Markets Key Drivers

• Online Games! MMOGs/MMORPGs
• Piracy
• Marketing and Operations CRM and Data Mining
• Disintermediation
• Game Network Operator
• Infrastructure Publisher Liaison
• Customer Service/Game Master
• Server/Network Manage
• Billing/Payment Systems
• Digital Rights Management

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Revenue Models

• Revenue Sharing/Licensing Fees
• Taiwan trend towards revenue sharing rather
  than licensing to diversify risk, especially for
  Mainland China
• Mainland China
• o       License fees 1.5 million
• o       Minimum guarantee 500k
• o       Revenue sharing 30-70 split
  publisher/developer
• MMOG packages and subscriptions
• o       Korea 30/month
• o       Taiwan 20-25/month
• o       Singapore/Malaysia 15-20/month
• o       Mainland China 7-8/month

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Opportunities for BC Firms

• Online Distribution
• Localization
• Access to the Mainland Chinese market
• Licensing/Purchasing Middleware
• CRM and Data Mining
• Network Technology
• Game Engines
• Regional IP Development/Licensing

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Final Recommendations

• Grow and nurture present and emerging talent
• Continue to gather and analyze market
  intelligence and sector needs
• Ensure that financial and human resources ready
• Encourage and stimulate continued innnovation

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Whats Next for New Media BC

• Vancouver International Digital Festival
  www.vidfest.com
• Driving the growth of the new media industry
  locally, nationally and internationally
• Lynda Brown, Executive Director
• 604-739-9878 Lynda_at_newmediabc.com